Chicago Daily Tribune Newspaper, May 11, 1875, Page 1

The dhicann Daily Tribune. VOLUME 28, JEWELRY, &o. WATCHES! JEWELRY | SILVERWARE! We invito particular attention to our superb seloctions in Rich Now Cameo, Coral, Onyx, Jet Gold Jow- oiry and Procious Stoncs of tho yory finest quality. Gold and 8ilvar Watches from tho post makors in the world. HAMILTON, ROWE & GO0, 99 STATE-ST.,, CORNER WASUINGTUN, PAPER HANGINGS, APER HANGING JOHN J. M'GRATH, AGENT POR ‘Hook F'reres, of Paris, Tils, of Paria S & Toekiiond, of Glasgow, Bootland, 174 STATE-ST. 176 Opposita Palmer House, ART SALE. THE ART SALE AT THE EXPOSITION BUILDING Continued TO-NIGHT at 8 p. m. Important Oil Paintings, hithorto unsold, to be offered. FREE Ex- hibition in daytime. Come boforel p.m. Grand bargains to bo secured of excellent paintings,as the own- érs mean to sell on this eighth night. B, 800TT, Jr., of Philadelphle, conduots the salo, WM. A. BUTTERS & CO., Auotionesrs. FINANCIAL. CHICAGO MORTGAGE LOANS, JOSIAFL FI. REBED, ¥ Nussoet., New York, reprseated by JTOXN . AVERY & CO. 15D LuSallo-st., Chicags. First-clnes facilities for Ainancial negotiations in Lenden, FOR SALE. oA P R AT Fanonal, aan ¥ hange ety naidered. . SeklaE v m.lb}:‘;;glo. '('J.AOI'. T8 Waahington-st. I AM MAKING ot loxns on Grala sud Provisions, aad locx caee oa Mortgages. &) markot rafes. V. 'VERMAN, Danker, & LATARYS 8“‘0&“"“)'8!’ o} (lmzm::m SALT. WI ARD NOW RECIIVING BY VESSEIS NEW SAGINAW SALT, AND CAX FILL ORDERS PROMPTLY, All Teading Brands of 8ALT, CEMENT, & STUCCO, Elking & Whoeler, 41 Lake-st. FIRM OHANGES: DISSOLUTION- The copartuership baretotore existing betwesn the wndersigned, under the firm-name of DENSLEYS & WAGNER, i1 haraby dissolved by mutusl consent. GHORGH k. BENBLEY, JOMN B. BENBLEY, DAVID W, BENSLKY, Sx04a0, May$, 1955, DAVID 0. WAGNER. COPARTNERSHIP. ‘Tha undersigned have associstod themsolves togother Jor the transastion of aUx¥TRAL COMMISSION DUSINKSS, wnder the fimn-name of BENSLEYS & WAGNER. Yiborsl eah advances made on Oonsignmentaot Oraln, Hoads, Provislons, £e. Option Ordars ia Graln er Fro- vislons exvcuted prompily, Cash property baogbt aud hald on mazgins, or shipped $o ather markets. GHORGK K, BENSLRY, JOIIN B. BENSLRY, DAVID 0. WAGNRIL, Om1oiso, May §, 1878, MISCELLANEOUS. For Bargains Attend the Auction Sale at 118 West Madison-st., te-dsy . @, Hilliard Tables, I 1 1 $0., &o. Sidka e (fflined Tables, Har and Mstaees, do. 4o PARIS FLOWERS, fontares (o ingand warky o :.f A riee dlroct from” P ‘sbusheav,, south of Kighte e o waihat, ESTABLISHED foravor X years, and focatod on one of 1ho best businosy S T e e i R ] “lr'a‘ 4 r:‘. .\.VI:IOLKNALI GHUUERS, P, 0, 2 543, Raltimore, Md. ‘WANTED. e e A TRUST FUND INSURANCE ASSOCIATION AND GENERAYL INSUHRANCH AGENOY OF 8AN FRANUINOO, OAL. Jsaersl ad Spaclal Lifo Tnsurasos Ageots wanied for 3o Klates, Noiore lapsod poliofes. Tho assuod sivars Matlafled. " For full infurmation addros or LIRA uasie, QR & ¢ aaa ar fha Nur S Laballo-at., Partner Wanted. Ax unusaal opportunity and safe tvestment s offered i e ol Rk, on. ol .n'nuonh:::ufll‘:ll‘u«m. Amoustare: 3 orilo : remain vn (e, Rdrobe for Abted date. A: O LEONAID: Tibune ofos: SHARP'S RIFLES, ), 0 i Sharp's Sporting Rifles, Tebaras o sasarimeiitof thase well-knows guns,which o a10011mce of workmianaiip abd flue shuoting qualitics B riou et 1t Mo ATDR, Hiatoiats REMOVALS, sta o S, REMOV.ATL. 10N oF, lygnflnn PAINTINGS, niteatd o8 apete o v SR oot S datotipie ’g-'i“.‘k thale poute wif 1 GIGANTIC FRAUD. Secretary Bristow Grap- ples the Whisky Ring. And Successfully Ex- poses a Vast Con- spiracy. Thirty-two Distillerles and Rectify~ ing Establiskments Seized Yesterday, Five ot the Former and Thres of the Latter Belong to Chicago, The Wide Ramifications of the Ring Laid Bare to the World, Bevenue Officials of Every Grade in Collusion with the Ring, The Government Reatem Out of $1,200,000 Annuaily. Its Servants “Stand In” for Forty Per Cent of the Robbery. °| Fifty Thousand Barrels of Whisky Escape the Tax in 8t Louis, Exposure of the Methods of Perpetrating the Frauds. Valuable Assistance Rendered by Two St Lonis Editors. Splendid Work Performed by Bluford Witson and Elmer Washburn. The Removnl of Commissioner Douglass Explained. DOWNFALL OF THE RING, A TENRIFIO BLOW STRUOK YEATERDAY. Special Diapatch to The Ohicage Trioune, Wismnoron, D, O, May 10.—The bLoaviest blow ever struck at the Whisky Ring of the country fell upon it to-day with telling effect. Over thirty prominent diatilleries and roatifying houses have beon seizod at Bt. Loals, Chicago, and Milwaukeo, and a mass of unimpoachabls evidenoa has boon colloctod which widl insuro the downfall of the strongholds of the Riug at thoEast, West, andthe Bouth. ‘The rosult reached has been nttainod after noarly nino woeks’ work performod by tho Socorotary of tne Troasury, fhrough the Solicitor of the Treasury, no otbor officers of the Departmont, not even the Bacrotary's office, boing intrasted with tho socret. It was kopt mont ecropulously from all in the office of Intornal Revenue, it haviog been sacertained bofore any active stops were takon that all importaut officisl secrots alecting the Whisky Ring were tclegraphied to its members {mmediately. DUMING THE LAST TEN DAYE of the operations it became naceasary to open the outlines of the cass to s amall number intho office of Internal Revenue, aud almost jmmo- distely tho socrots which had beon succeasfully kopt for eight weeks bogen to leak out. For | the last weok the chiof work performod haaboen to prevent auch promature publication 8a wonld seriously affoct the movement. Fortu- natoly all record ovidencs noodod was obtalncd Lefore any hint of the movement was made pub~ lio, Buficiont warning, however, was convoyed to all points by one or two irrepressible corre- spondents to enablo owners of distilleries to put all things in order for a visit; but, fortunately, the evidencos of thelr gross frauds & i the writton records, and can't be in suy way obliter~ ated, . TON BEAL CAUSE OF MR, DOUOLASS' RETINENENT, 1n this move and it results are found the true caunea of tho changa in the head of tha Intoroal Ilovenus office. Mr. Douglass waa not believed to bo io any wsy personally conuected with the transsctions brought to light, but it was %0 apparent that frauds of long standing had Leen able to prosper through the neglect of many in the Du sud for lack of applylng sufliclont chucks and guards, or through constaut omisaion vo vigorously use thosa adapt- ed to provent frauds, that the change was deold- edupon, Upon learning tho facls developed by tho meoros investigation, it Is bat juat to Alr, Donglass to say that ho took hold of the matter with earnestuess, furnishod all the information Lis office contained, did his Lest to prevont pub- Licity, and {ssued all the needed orders for the seizures. The night the officors loft Lere for thelr poats, TOR RING IN AT. LOUIS was fully advised by some ouein tle secret, through & telegram to Bupervisor MoDonald, roadlug aa follows : * Lightolog will atrike Mon- day { be prepared for it.” 'This o 100 late, however, aa no smount of preparation could blot out the legal record of evidence ohtsined, As yot, open sieps havo only beon taken in re- gard to the points alroady named. Rocords have beon colloctod, however, in regard to tho whisky business at Oincinnatl, Loutaville, Pooris, and Pokin, and all of this ia now under- golug rigld oxsmiaations and comparisons, The papers in relation to Pokin bave thus far had most attontion, and the showing made for the distillers and rootitiers thore {s in the main eatistactory. . ABBANGEMENTS WERR 34D the middle of last weok, by tolegraph, for the concentration of the nesded offloers of the Troas- ury and of the Internal Revenus office, and on Friday o“nln!ht!zo followlog th 07daee b wid ) CHICAGO, TUESDAY, MAY 11, Ageni Yargan ag his chief sa Louis, Buperrisor fintton, of Philadslphia, lafi for Chicago, whera .Col, Elmer Washburn, (Chief of the Becrot Borvice Divislon, will co-operate with him, Buporvisor Hedriok, of Iows, will meet the woll-kuown 8peclal Agant Mr. Brooks, fr., sod make the ssizures at BMilwaukee, Tha disclosuros made at Chicago have been worked up by Col. Washburs, §while Mr. Brooks haealso beon most efiiclont and onergetis in the Qeld allotod to him. THE ONDENS FOR SEIZURE ombraca the following namad distillerios at St. Lonis: Touacher's, Ullrici's, Bevis & Frazer, Dingliam Brothiors, and the following rectifying bouses: G. Boneberz, 8. 0. Fedoror, Dovis, Frazer & Co., Quinian Brotliers, Bollman & O'Hara. Also the following dintillories ot Chicago: Union Coppor Distilling Co., G, G. Russell, R, 0. Blosereau, Lako Bhore Distilliug Co,, Willlam Cooper, and the following rectifying houscs = Roell, Juuker & Co,, Goluen & Esstman, Parker R, Maton. The orders for selzure st Milwaukes embraca tho foilowing distiliotion: Ilonry Schosnflotd, Cbarles Grau, Louis Rindskopf, RMeuomonea Company, Kinuikinnick Company, ¥, Dorgo- thsl, and the following reotilying houres: 8, Meyer & Co., A. Bchooufeld & Co., A. Laser, Milwnnkee lodistithng und Roctifying Compa~ ny. J, Herstain, Wiliiam Misnoy, Carl Palskey, Thus the seizures hiava beon: At St Louis, five distillories and six rectifring honses ; at Chicago, flve distillcries and thres rectifying hounes ; at Milwaukes, six distilierien aud sevon roetitying houses—iu all, szteen distilioriea and mixteen rectifying bouses. All the abovo-nnniod rolzurce wore made fo- dny by Lhe pastics numed. AT 5T, LOUIS only two establishmenis wore running, andthess wore expecting o movo, but not seizure, Im- portant pooks and papeds worecaptured, aud the lem"’ taken is valued at near 1,000,000, .arge atocke of highwiues were captured at Chi- cago. All soizures were mado accordiug to order, Besidos thesonamod kotzuros, five other rectifying Lounes wero ordered to-nigbt in Mllwnn{lec, waking cigliteen in all at that placo. Dy further examiuation of papcrs horo to-dsy, a shipmont from a Milwaukeo houso to Now York of 450 barrels frand-whinky wag discoverod. 'The soiz- u1e of the rectifying and distilling house of G. B, Binghara, tant, lefd for Bt AT EVANATILLE, I¥D., was ordered Ly tolegraph this atiernoon, all or- ders for eeizuiea bLoivg sent by Deputy-Corm- muesiousr Rogers, Orders wors also telograplied to revenus oficors in most of the Eastorn and Houthern citios to tako transcripts of all booxs that could in_any way assisc in the investigation, iid also to obtain serinl numbors of all packngen of npirite, GOLLUSION OF OFFICIALS, Investigation to ascoriain what officials and otliors hore Liave bseu communicatiug with tho ring s being vigorausly pusbed, and in 8. Louis it bas to-day boun ‘ascartained that n tol- egram a8 sont to the ring on Friday lnst, rand- iog asfollowa: * Plaguo advancing westward ; advise our frionds to leavo oity st once,” ‘Tola- grams havo boen scut to sil pelnts ordering prompt sleps toward prosccutions, nnd suits against property, on bonds, aud ngaings bonds men if necossary. " TIONORANLE MENTION, Ta tho list of actows 10farred to below in son~ noction with the firat work at Bt. Louls, nbonld be addod a8 entited to vory special credit, Sa- poryisor Hawlor, ledrick’ & Bntion, and os- gulnfly Col, Washburn, Chiof of ths Bocrot ervico, and Specist Agent Brooks, the lattor bo- ing thesame whom it was ouce eouglit to kill in Philadolphia for cxcellont work there, Tho work began in 8t. Louis, a4 will now be detailed, and this ot anco led to the brillinnt o~ sulty attaluod at Chicago nod Milwaukes. i b THE CAMPAIGN BEGUN. NOW THE CASE WAS WORKED UP, The bistory of this admirably planned ana skillfully oxecuted campalgn againas tho whisky-~ ring at 8. Louis ia ns follows : Eacrly lass wintor tho Becretary of the Troaaury becnmo thoroughe Iy convinoed thot the filicit whisly trafic was rapidly inorensing, that the rovonuos of the Guvernment weio far less from this ar- ticlo than they should be, aud tlst the honest manufacturors and doslera wers suflering from thia condition of affaira to an extoat that soriously throatoned their Lusiness, Vigorons attempts wore made through the regular ma- chinery of tho Internal Revenuo Office to corrcot theso abuses, snd both the Commisaionor, the Becretary, and tho Presidont camo to tho con- clusion that tho Bupervisors and othar subaltern officors n soveral soctions of the conntry must Lo in colluefon with the doalors in * crooked " whisky, a8 tho illicit article is called, This conviction lod to tha order transferring all Bupervisors and Special Agents to new postes. Lut thoso thua orderod unexpestedly from the fleld of their labors wore ablo to concentrate influence onough wupon tho Presldont to induce him fto muspend his own ordor. Tho Bacrotary then began to oxamino the whols fiold, through somo of tho trusted agents of his owa ofiice, and while all investigations soomed to deepen the conviction that several extensiva and powerful ringa wero working in collusion with revonue officers and olficiala of other branchos of the Governmont, thoy scomed se- curely intronched, and the means of successful~ iy grappling with them appoared to be lacking, so porfeot and powerful were their eombins~ tions, AX EDITOR TAKES NOLD, Bo matters continued until nem the middle of February lart, when Mr. George W. Ifishback, proprictor of the Bi. Lonis Lemocrat, sont a lotter to a friend in Washington containing his (views in rogard to tho whisky rlng in that city, and asking tho gontloman to whom Lo sontit;to say to Gen. Bristow thnt if ho would appoint s man who could bo namedas & secrot agent, amd give him such aesistancs as Lo required, he, Fishback, would answer for the breakivg up of the ring ia Bt. Louls, Tha Bocretary muthorized an immediato roply by tolegraph, promising to appolut the man whom Tishbaok would indicate, upon receipt of bLis nome by retura dispatch. Bo thorough was the eaplonage of the riog in 8t. Louis bolioved to bo that it was not deomed safe to communicats up- on the mattor by telegraph, nor, lu fact, diroctly with the Troasury Dopartment at all, and s0 the npame was- forwarded by mall, Even thoso precautions wero not suflloient to prevent®some inkling of what what was intonded from roaching tho ring, and a man was dispatchied to Washington to nscertain, it posaible, what was going on, aud he actually roachod tlus city and had had iotorviews both with tho Comuissionora and tho Booretary bo- fora tho name of the maa floslly solooted for the work was communicated to tho Socratary, Tho mao who cams pretended to bodoelrous of work- ing agalnst tho ring, and to be in the confidenco of the vory mon who wero promising tho Bocre- tary bolp; sud so plausiblo was ho, that ho was on the point of discovering the plan by which it was proposed to move on tha ring, whon ke was exposed, ,ihrown oft the track, aud shrewdly disposod of, when ho imagiued himaelf in possesslon of tha very se- crots which tho riog deaired to obtain, A BPECIAL AGENT NEORETLY COMAIISSIONED, Mr, Fishback was thon requestod by the Heo- rotary to coms here in person, ‘Che whole mat- tor was talked over, and a commlasion issued to Mr. Myron Colouy, Becrotary of the Cotton Exe change snd commercial oditor of the Democrat, 88 8pecial Agont of tho Trossury, and ho was suthorized to employ such clerical and dotectlve force ss was nocessary to porform the work sgreed upoun, 'The utmost sccrooy was ob- sorved 1o issulng Mr. Colony's commission and jostructions. The whola case in the De- partment was placed lu the hands of Msj. Blu- ford Wilson, Hollcitor of the Treasury. Bacentalued beyoud doubd thal Sl 1 bnd Bupsivieor Uawiey, o1 oy York, with geslad | tho osders and smovemonta of the Latersal Bove enne Burean and of the Treasury Department wero instantly and regniarly telegraphed to tho agent of tha whisky ring, and that even tho con- tents of ciphior dinpatches in regard to tmpor- tant operations, and, in short, everything whicts it could {nternat the whisky ring to know, was at oncs communicatad, and, of course, by those holding the most confidential relations in the Departmont, A paw cipher, unknowa in Washiogion, was thorefora agreed upon, and it was arranged for cortaln mecariiy that sil thess should be ad- drassed to s gentlaman in Washington having no connection with the Departmonts. The official correspondonce upon the subject and the lolegrama wora not enlored mpon the files of the oflico. In the Dopartment, only the Becrotary, the Bolicltor, and one confidential willer know anyttiog of the affair. Outrlde but two special rovenus agenta koow the full extont and meaning of the movement, 3r, Colony's commizslon and instructfona resched bim in 8t. Lovis an the 6th of March, and on tha following day, after full conaultation with Mr. Fishback, {heir proliminary plans wers porfacted, and work was beguu, There aro in Bt. Louts eix distlileries and twanty rectify entablishmoats, The dletilleiies aze known by the following Damen and firm Tha Autore, Zoascha's ers, Gluci & ovis, and THE FIRST STEP, WATCIING TILE DISTILLERS AND THE RI¥0, Tho firs: step waa to procuro watehmen fo note every movement of grain and whisky at thoss distillories, nnd especlally to korp & closa oye upon {hem at night, It was a difiicult thing to ind men who could bo trusted, the ring, and ly's, Driginn Broth- oven alt it workmen, being exceeding- Iy watchful, end ncoustomed either to buy up or driva off all set to noto their praccodings. Dat ns fast an two suit- ablo men could be found they wore placed atono of tha six distillerios, To lonsen tho chauces of thelr being discovered as watcliers, thoy wera kept Lot ouo day at tho samo post, and tum nest oll wore changod to other distiticries. Tull re- port of nll transastions wore randered daily, 1t waa at onco dincovered that all the distille- rica, excopt one, which was being enlargod ro a3 to give it o greator esvacity, wero running at thefr fuli capacity, though many tubs in ench wero loclied up; that they all continued througlh the niglit ; tiat they worked lato Saturday night, and began early Bundsy night, thus cutting off Loth ends of the Sabbath ; nnd that all both reesived grain and ahipped whisky af- ter dark, in fagrant violation of law, and, as is 1eadily goen, roquirlog collnslon at every step on tho part of tho revonns officora aud empiovyes of iko vanous calablishments, The wutclicrs weta Lo noks tho number of loads of grain brought i, and to obtmn in each case the number of tho bulk-grain wagons bringing it. This vumber must by Inw be oltber upou tho box of thio wagon or the hurness, This taking the numbors of wagons by strange partica first lod to thoe discovery by the distillets that they wore watched, Tho drivers of the grain-wagous bolug ono day at one distillery, sod the noxt at anothor, finally mot fu thefe rounds the men who had been changed from othor noets, and begau to report that tho man watehinyg were those they had seen at other dintilerios tho day bofore. At first the attompt was made to throw them off the track ‘y removing the numbera from the wagons, and putting them on tho traces, and spattering thom over with mud, Dat the ~vatchmon poralsted, sad, winlo n load was boing “emoved, hunted the box and tho harness over thl the number was found, Tunnily, to sscoriain to what extent theso wagona woro watchod, tho ownor of most of them, ono Wolfinger, #ont tho same driver to drivo ono load to osch distillery and noto tho mon watchiug, In this way the whole forco of watclmon were recognized and {dentified. Then bagon o serios of assaults upon them, and sov- eral wera beaten savoraly in opon day, and many moro at night. Some were to badly injured a3 to bo laid up. Then strong mon, with & enpacity for fighting, woro put in thelr placos, and somo of {liedo finally commanded immunity from at- tack. Tha cily police gave thom no protection, and at firat acted aa if they had orders from tho Chief of Police to sllow them to be Leaten, anid to make thom ** movoon st night as vagrants, Of this compliclty of the officers of police thoce is considerable evidonco. Through those watchmen the groat froquoney of shipmoent aftor night, nod under various sus- picious elreumstances, and, in short, the central fact that each distillery wos yuuning off an im- monse amount of fraud whisky, sud in such an opon way as to show that nearly the whole ravo- nuo fores must be partica to the tranwactions, was catablished boyond s doubs, A GREAT COLLECTION OF TELL-TALE DRAY~TICKETS, ‘Tho frct of largo illicit production baing tully provon, Ar, Colony vory nasurally reasoned that, it tho shipments out of tho city could bo ac- ourately recertained, thoss could thon bo com- pared with the sworn retorns to the Commis- sloner of Internal Rovenuo, and, since com- parativoly only small quantities were sold to dealora in tho city, the differonco would showtho amount of * crooked whisky."” To throw hia own force and othors wholly off tho track, he first directsd tho records of ahip- menta into Bt Louls for tho year 1874 to be taken for soveral leading clazéos of merchan~ dine, includiog of onuree whisky and highwines, hiscopyists being instructed to miss nothing in tho liny of articles turnished thom. This for- midablo labor beiug sccomplishod, ha then be- gan tho roal work in Land, and lis copyists uranacribed every dray or shipping- twkot of morchandiso” sent ou! of Bt. Louls dunug 1875, and thus, without appearing to pay any attention to whis. ky, be hed smong tho napors, whon tho work wna done, a porfect rocord of overy paciage of spirita shippod, inclading the nama of the firm shipplug, ita dato of shipmont, potot of deatina. tion, number of the paokage, kind of spirits, and name of tho consignoo, iho originals all attested by tho sbilpping-clorks of tho various firms, Thesy originals will uow be svailabls as evidonce in the courta. "Tho character of the work was not discovered in any quartor, aud not evou suspoctod until it wau ull completod, ————— ""CROOKED" WHISKY. METHODS 0 IERPETRATING TUE FRAUDS, As tho Uovernment kespa an account showing the amount produced and shippod, sod s it 18 nocessary that these ubail always balance, in ordor to make way with thelr lilicit production, thoy must make purchases of the samo amount of regularitax-paid whisky, generally from out of thacity, This dove, thoy thon send & lot of Jiticit whisky to thelr roctillors without stamps, aud dump it. ‘fhoy thgn protend o have taken the lot pur- chased out of town, with all etamps and num- bors right, to the ructitiers, aud to bave dumped tliat, aud this purchase and dumping is entered on their books, Thoe purchased lot is left In store uotil acoumulatious of business haveab- literated cloar traces of it, and then It ia wold. Tihis {8 one of tho boldest mothods of fraud, and, of course, roquires collusion with revenue oflicers of various grades. A discovory of & tranasction of 800 barrels by the firm of Bingham & rothers, of i, Louls, by Bpecial-Agerit Yargau, thus purchased and slored, duplicated by dumping, aud fually ship- ped to New York, opaued Lis eyes to the systom, aud his went at onoo ta New York and communi- cated the case to Bupervivor Hawley, The laiter put bis whnolo forca at the disposition of Yargan, sud fu two days transcripts wore procured from the dealers’ books of all shiprmouts for Jsuuary, February, and March of tiis year, ‘Theso tranacripts wero brought hero, and (e wirlsl wumbare of esh lob sompared with the duapion payer i tho oios of lutwnal Bevesus, 1875. This comparison developed the fact that dupli- cate and even triplicate lots bad been froquently nhipped, and that the transactions wers on the boldost and most extensive scale. This part of tho examimstion showed that four-fiftha of alt liquor shipped from Bt, Louis to New York waa {llicit. For the thres months examined, about 2,600 barrels of tuis fraudulont whisky was slipped by threa Bt, Louls liouses alono, namely, by Ul ricl, Teuscher, and Bingham & Erothers, A BLCOND METUOD OF FRAUD, The dintillera avply Lo ths Collector, and re- coive tax-pald stamps, for which thoy pay their full value, Theso they place upon what wonld ba ealled ! straight goods," which are taken to the recti- fying houses and dumped So farthe traus- action {8 honest, Tho rectifiar, after dunping, removes the tax-paid and warehouse stamps, and returns the samo to the distillers, tho Gauger certiflying that he has scan the same destroyed. Theso statmps ate tben placed upon frosh barrols fliled with ilitest goods, and shipped to Now York or somo other yoint, and no entries mado upon their booka of tho transaction, the only entry appearing Lelng the firstshipment to tho rectify- iog house. Thoy trust implicitly upon tho nege loct znd difficulty of any comparison of the serlal numbers. OTHER METHODS, Another plan by wiicn duplicated numbers ato uned, 18 by fillivg tresh packages wita illicit spirity, and, baving placed thoreon s barrel- stamp, sod branding upon the barrel the serial numbers of original taz-paid stamps, which Lave beretofore been referred to as dumped and s shippod to New Yoriz, nud thus uaing the scrial uumbers for theso transactions, Annthior modo of selling illicit goodsis to sand apackage having tho rectifier's etamps upon than, to & dsaler, oy I Cuurleston, 8. C., ond whon tho poods aro ueed te bavo same stamps relurncd and frosh packages filled Aud Kent to tho mamoe dealer, without auy ontries haviug been ado ug.on their books, To render thin practicable, thio stamps, which are supposed to Lo put ou with a stroug glue, are in zoality preparad on the back 6o that they will not stick, ood aro kop:t fo placa by amalt uails, so that thero is no difliculty whatover in Temoving them. ThoSt. Louia ring paid aregular price of about $12 each for barrel-siumps returued. Olticers in the districts to which x1id geoda are shipped have nomeaow of detecting theee frands, Goods upon thelr face appear straight, and if they ara soized, the casa is referrod to St. Louis tovenuo oficers, aud If the records aro not s0 mada up ss fo exonorats the distitlers and rectifiers, they are amonded by consent of the rovenus oficors in such & way a3 will cloar the detacted parties, ANQIHER ANRANGEMENT OF DISTILLERS is thin: They havo beon provided with facilitios for emptying their wesh and illicit epirits on hand ai a fow moments’ notics,—to bo used only in caso of an unexpocted arriva lof oflicors. They need but fifteon minutes' notico to ompty thoir wash-tubs aud ligunora into tho mowers of Ht. Lonis, which plan of action hnas been necossi- tated only a fow times, an thoy ore ganorally unotifiod when tho ofticers will arrivo. Awong thoe Loldest mothods of all discuvored wero s fow whero cortain lots of aphits, tax- Taid, wore takon to n roctiller’s and damped,and tuken tirootly back to the distillory with thae stampa intact, filled apain sod domped the second time within two deys. The dumping- piapers of theza two transactions, with tho eamo small namber on the stamps aod packages, wero ited only two days apart in tho Collector's oftice, and yol thoy wero allowed to escape all oflicial exawination. Bomo casen wery found where cartain lots were dumped, and then refilled and sent to another rectitler's in the city and dumped again, and ths papern filed with " the Collcotor would have showed tho duplication upon tie most caaual ox- smijuation. THE LATIST METNOD DIZCOVERED. Tho laat, aud oue of the most prolific mothods of fiand broughe to light by the fuvostigation, romalos to be mentioued. " Through collusion with the revenuo ofticers, theso Bt. Louls distil- lerics Lave Deen allowed to ship genorally doublo, and often treble, tho quantity entered oit tho stub of the stamp. Tho stub-books of ail whisky-stamps {ssued aro returned to the ottica of Interoal Xlevenue bhere. A comparisou of gomo of theso Looks willh the transeripts of elpments recelved 10 New York disclosed tho trick, and a brief examination disclosed tho fact that 1t had boeu {)mcticod 10 an enormous extent, A fow eawple transactions of only two bt. Louis houses, takon at raadom from tho recorde, will illustinto the mastor. Ihe followlvg mhipments of 530-barrel lots wore made in ous munth by Bevin, Frazer & Co., of Bt. Louis, to Willism Brico & Co., of I'ila~ dalphia. The first column shows tho dato, the socond the outry on sho atub of tho stamp, show- ing thie number of gallons tax was laid npon, and tho third tho number of gallons actually shippod uoder the atamnps used. ‘ Siuba, Stampr, 3,05 | 4,008 1043 | ez 247 | 44 1,263 | 4430 Shipmenta by the same to W. 8. Miller, 69 Droud stroot, New York : T Siabe, Stamve, Tob, 27, 1675, v 2263 | 447 Maroh "9, 16 4337 | 445y Blarch 13, 1h75, Lok | 401 75 % 4,380 2420 | 43%0 1390 | 4,89 AZuiCReresderennsnesnnsssaval ROSD | 4,09 Tho {nllnwlniuhfixmnnu were mado under tho mumo mothod by G. Donsberg, of St. Louls, to W. 8. Buller, of No, 51 Liroad u:rget, New York. All these lots contmined thirty barrols, except tho second and third, which woro fitty each : ittt smlowo e bbbl Mo Y Stuba, |Stamre, 985 | 2,85 2310 2',395 L | 436 1,007 | 2,319 2,019 via | 2651 e UL LU S L N L L ‘There sosms to have been scarcely no limit to transactions of this kind, It has alvo beon discovored that tho frands havo even exteuded to duplicato and triplicate traneactions with the wholoaals doalars’ ntauin of 10 conts. Iu mhort, no means of dofrauding soems to bava beon overloakud or neglocted. Lelore tho publiv movement wasmade, moans wero taken $o secure transcript of shipuionts re. osived from Bt, Lows, Chicago, snd Milwanleo at sll principal pomnts both East and Wost, ‘Lheso, with tuo distilicrs' bouks, and the rocords roiurned by Collectors to the oflics of Interual Kevenue, will now onnble the ofticers 1n uhargs of the matter to traca out all the details and the full oxtont of those frauds, and fix the oxact olliclal respousibiiity for them, Comparisous thus far wado indicate that the 8t, Louis distilicrs Liave beon rn\'m;: only nbout ono-third of their tax, aud bofuro the exatnlon- tion ends it in contidontly belioved that 60,000 barrots on which no tax waa paid will be traced fur the leat swelvo mouths, —_—— ON THE TRACK. THACING WHIGKY 70 ALL PAITS OF TUN COUNTRY, In this copying, all hoavy shipmonts of whisky woro noted, and (he marks aud points of dos- tlvation wore {olegraphed througli the channel agreod upou to Solicitor Wilson, Trustedagents of his secrei sorvico forco wero st onco dls~ patched to the place of arrival, to take the sorial numbora of the pi gos. The shipplug roturns of tha ficma {ovolved wore thon exawined, and also the dumplng papers, or, in othor wordy, tho ofticisl roport of each lob of whisky sent to tho rectiflers sod poured into their ciaterns, Thus, in many fustances, it was ascortained that large lots had been taken to she rectifiors, dumpod, and tho officers bad cortifiod to the Commissloner of Intornal Reveouo that they wore prosent, saw the dump- {og of euch casks, gaving the serlsl numbors, and destroyed th vmps, But, instead of do- stroying stamps,tho ssme barrols had Loon taken back with ths stampa iatact, filled with * eraok- ed" whisky, and shipped to diutant polnts. In this way doplications of large lots were detected at New York, ‘Wilmington, Chbarleston, Savan- nsh, New Orfeacs, and Mobile. In wany cases there hed baen aven w triplications of packs The {ollowiag arejisome of the frms in New York to which this lilicls whisky was shipped ¢ W. B, Millor & Co., 40 Broad ntroet ; Bath Eley & Co,, 143 Front stroet; Thomaa Thatchor, 57 Brond otroot : James A, Wabb, 195 Broad strest. At otlier points, the following firms wore fov *. to bave recoived s greater or lens portion: <5 F. Woitars & Ca. and Mints & Co., Charlos - > IL Myors & Dro, and Dernbardt Kaytor . vanoah; IL Droobill & Bro, Wilminge 5 I. Moyne, stobile; Paul Jones, Cla ] Webb, and L, Colion & Co., Atlanta. i It docs not fullow a3 & necezsity that firmn ara criminally implieatod § bat, £ ally Bposking, they had knowledge of 3.5« of gooda mont them. Roports have a~ meto Land that prove conclusively that at_ > moro polots, at the West chiefly, largo { theso {ilicit pirits Bava beon roceivod. THE EXTENT OF THE RING AECERTAINED. Thus tlo wido ramifications of the ring wero Iaul baro. With fts contro at 8. Loufs, it touched every point of importanco reached 'y a radius oweeping frow Now York aroundie Now Orlorns, It s easily soon that su~k tranesctions nroved | tha coliusion of neariy al! rovenus olticiale, and the deliborate porjury of many ot thom. Assomaof the disiiliers foand ut that they | wero all watchod, they droppsd thoir re- | ceipta of grain to about & quarter of what | they bad boen taking, and eont ont euly | about one-thizd as muca whi wera thon trken off and dio howerver, nscoitained tha n lvmin. and, too caja: of the wagons hLaing known, the amaunts received over a conei ble perfod was pucertained. A eomparieon of thowe receipts with ths amount sivorn 4 in teir S0 80 1nrwal roturas expozed the upjroxiwate amouti of thelr ineit masufzeiuro, V7h:u tue estnblishmonzs reducod their ca- pacitg, many men weie thrown out of coaplove oicol,’ Bomo of theso woro given work, sud, by casual conversations with them on to tin mulos of bLuriness pateued in the distillories, the mothods of removing and re.wing etampa and packages ware diszoverod. and unich other val- uable {uformation of n irailar charactar, i Valvaton THE DIVIDE, RECEIPTA OF TILS RING OFFICIALS, Tnder existing arrangements, about 49 per centof tho amount of tax out of which tha Government is Cefrauded goos to tho ravenus ofiicials of various grades, to ofticers of the ring from otler branchea af tho servico, and to the outside mon of each, This part of tho spoils has reachod, as near an those engaged for savoral yoars in tryiug to get At secrots of the ring can estimate, about £400,000 annually, aad, with what distiliars them- Koivea pay extra to minor officials and their own omploges, has certainly amounted to moro than Lalf a miliion dollars annaslly. The payments made by one of the smaller dis- tillories to one portion of tha ring, asappears from the following transcript from the books of Jobu Buaby, obtawed by a special agent, wiil give au dication of this part of the busincss. Josaph Fitzray 13 a Doputy Collector i charge of distilleriss. Tho transcript road: Jobn ram 1 39, 1 7, at Casy casli-booka of A Thia transcript was how toa set of ofiicera who were complaluing that thoy did not receivo a falr sharo of the profit. The distillors declared that soma one bad beon regularly paid for them. The wranglo lod st firut.to » eplit, and then o bitter quarrel, which threatoned to exposo both parties. At length, for self-pro- tection, all unitod again for & confersnce, which led to a regular compsct abont August, 1874, by which it waa agreod that Lereafter 20 per cont of ull prafita from {llicit spirits should go to offi~ clals in tho ring, and 20 per cont to dealers who ook tho risk of dispoeing of the goods. The distillers wera to rotain 60 per cont; but NUMBER 260, FPindlng that they would not_be all trandalently, tho,’v all nunpnndlel exel:torasy bnThéqu;m;!‘ml‘m;or ia wxlmzhl tlv]syut to wark to . Hnnt sliowe =11t wu,mlwdn hcm&?v' 1t thay have hunwo}w us i X0 AGCH Hav.. ESAILED has evor befors bean s, ., uu tha groat whis. Ly riog of tho country. It hasin reality boen the work of efght weeks' acilve eampaigaing, Home time was ocouplod in reconnoitering the enomy, but the activo oporations have only ex- tended ovor the perlod namod. While Becrotary Bristow directed and nerved tho wholomovemant, its but just to say that from firs: to last tho Prasidont, whom ho consnlted, and to whom L mada known the charactor’ of the woric he had begun, gavo bim futl and unhesitating sunport, ‘Lhe working oar fell to tho fot of Maj. Diuford Wilson, Solicitor of tho Treasury, to wham ths dolatls waro futrusted, 1t was desmod bost {rom the ontaot to work wholly independent of the offica of the Commismonor of Intornal Iov- enue, not bocauss tho Commissionor wan dis- trusted, but becauso it waa coztainly koown that sowme ono in lis ofics, and probably noveral of them, promptly communicated overy oficlal so~ cret that affected the Whisky Ring to itg obief manzgers. WIIEH TIIC WORK WAS DOXZ tha results were mado Lnowa fo the Commin- | moner, In tho ratio mannsr ths ordors aud of- ficial correspondoncs on tho subject weors uot allased to paes throush the usual channels in the fecrotary's odice. Al was kopt personally i by Solietor Wilson? No wrl of tiils magnitudo or iriporlance was ever bafore potformed by any Solieitor, ood 3aj. Wilson desorvos unstinted praise {or his enerey, courage, aud akill. Hpecial Ravenuo Ageut IL T. Jayar and Bu. pervinor P, 13, Hunt alono of tho wholo force st command for the work woro trustod with ita eacrets. Thin {s quite sufllelent to show thoir standing with tho ecrelary. Thoir brillant work in this mattor bos not only justitied lus Ligh opinton of them, but enhanced it. ‘Ehe coure taken by 3L, TISUDACK is ontitled to great praise. It roquired no small degrao of courage to begln, and as the Liuge die menvions, tho nower, and the woalth of the ring bogan to appear, thoy wors enoushi to make even a Lold man Lesitate, Dut no backward step was takon, and from the outsot the campaign waa pusbed vigorously. COLONY'S WORK AND TLANS speak for themsolves. With theus seizures the roal work haa only berun, The records, papets, and evidenco secured aro of a character whicht wilt discaver the countless ramifications of tha voat conspiracy, and insure tho punishment of tho guilty, Nuwmoroun prosecutions will bo bogun a4 ance. s e OMMISSIONER DOUGLASS. WHY i WAS DEMOVED FNOX OFTIOR. Sverral Duraieh ta The Chicaco Tribune, Wasiixazox, D. U., May 10.—Thoe removal of Commiseionar of Internal Reveauo Douglass is no longer s mystery, o was s victim to his own eystom. Tho following statoment, derived {fiom tho moet authoritative soarces, oxpiains the recent chango in the Chief of tho Internal Reve- nue Bureau, and fornishes tho reason for tho rimultsncous =cizuros by the Government to- day of some of tho largest distillerios in the principal cities of tha country. It in vory evi- dent that Douglass know nothing of to-dsy's operations, Tno attention of Becrotary Bristow was called earlyiu tho winler to tho fact that contraband spriits were put on the market in such quantitios 23 to interfore with legitimate trade, Theso com= plaints were made by rorpectabls firms engaged in the liquor trade, whio found themselves unableto compatoe with rival houses on account of TUT ABUNDANCE OF ILLICIT WINSKY, This fact oxplains the reason why the Socro tary of the Treavury during the lsat scssion of Congrees was opposcd to any increnss of the tax on whisky., s thon arguoed that, it tho sale of out of that they were to pay storekeepers and gaugern, nad {leir own bookkeapers and por- ters, 60 penr as hias beon ascortained, storo- Leepsrs and gaugors recelve from £100 to €160 eztra por month, and bookkespers mnd porters from $75 to $100 oxtra, Tho stoaling is estimated by thote who bave given tho mattor longoet examination at about $1,200,000 por annuta. Tho riug firab bozama strong in 1871, Somo politicians led cortain of- ficars juto it oo the ploa that it was necossary to raisoan election fund, This was simply a blind, and when tho oflicora wero once captured in this way it was easyto bold on tothom. In 1872 the ring was bscoming formidable. 8till thero wore no rogular paymonts. Thore was much blackmailing, and eonsiderable briliog. Tho next yoar it was in all respects formidablo, with the samo regular modes of corruption, But when tiually exposcd, as tho roader has nltoady diacovered, it was in nil ita oloments glgantic. It desmod [tsslf impregnablo, Ithad 1ts paldagents and sples in Washington, snd actually {n the Departments, as tho prematurs Information thoy so promptly roceived couclusively shows, Thoy uned officors of justice and_ofticora of the rovenue in 8t. Louis. They did nat believe it possiblo that any Becratary would dare to grap- ple thom, and a0 they Lave marched Loldly on to eir deatruotion. THY RECTIFILRS INVOLYED. The following rectifying lousas in 8t. Loms havo beon discovered a8 partios to these frauds : Georye Benabers, Bovis, I'razier & Co., Quintin Drothors, ¥, C, Fadecer, Roltman & O'Huza, I, A, Damon & Co., J. L, Bemookor, A compansan of some of tho (ignres obtalned at 8z. Luuls by actual count of {he Larrels, fu tha case of one flrm nithdrawn, with tho number re- ported o withdrawn to the rovouue oilicials, .“"L » difference for five days only of 139 Larzals, —— WOULON'T SELL. TUE EXPERIENCE OF A BUPKRYISOR, Col, 1. B, Hunt, the new Bupervisor for Ken- tucky, Alabama, Teonosses, 3lississippl, aud Louisiana, with Special Levenue Agent IL T. Yaryau, were tho ouly oficors of tho Dopart- ment who wore folly awaro of whai (he Bocrotary and Bolicltor Wilson wers dolog, Whon tho movomont waa first undertal and, in fact, befora it was under tull headway, Col. lunt was ordoted to proceed to Naw Orl:nul o procuro u corroet assessmont of thio distiilerics which had b:en solzed vowo timo provioas, snd & low assesament put upon ita propoity, and a proposal filad to pay tho assesa. mont 3t tho Uovernmnont 1elzase aud aliow thom to run sgain, When Col. Hunt resoltod Holly Springs, Mias., a goutleman steppoed up to bira ou the platfori, callod b by namo, aud appeared very frioudiy. e took the tram with bim, aud scon aftor bo- gan to talk “business,” Jlo waa ono of tho principat distillers of Now Otloany, Thoy bal heard direct froms Washington that Col. Huut was comiug, whick shows {lat clerks or officors In tho Dopartment ‘had tolographod that Iyt was coming, Without wuch hesitation or-dolay, this man, Walh by name, procooded Lo asy that they ware witllug to pay, 88 thoy hiad dono before. Mr, Cobb, bis prodecessor, received from ull eources in Now Orloans from 10,000 to $12,000 a year, sud Loy did uot considoer that vory liberal, Col. Huut put him off very decidodly, Walsh, however, was very persistont, callod on btm in New Orleans, followed Lim back to Loaisville, and inoressod Lis offer thers, and followed on to Lexiugton to insist that it suould be accepted. Col. Iuut, howover, in this aud a sub- sequent trip, asceriained and reporled such facts a3 had led to the distil- lories in Now Orlesns sutpending operations. It was ascorsained that thoy had beeu conatautly reporting their produstions 23 gallous to the barrel, whereas Col, lHuut found, through s Htorokesper of bl own whom ke ocould trusé, hat Wbo aotual production waa ever 33 galloak illicit whisky in any considorablo quantitios was poseiblo under tho old tax, frauds apon tho rev- entio would be increased if tho inducement to illiele distillation wero made greater by the in- croase of tho tax. Secretary Bristow gavo tho subject caroful attention, snd conferred with Commissioner Nouglass. The latter had tho fullest conflidenca in his systom, aud maintained that under it ouly very srall lots of distilled spirits could eacapo tho payment of tha tax, DOUGLASS FULTULL MAINTAINED that illicis whisky could only bo manufactured in out-of-the-way places,and then smuggled inta the trade in an unusual mavner. Mo reliod upon the perfection of the system of collection which hio bad originated, and upon the iutegrity of the oflicens fn the servico, s olaimed ihat extended invasions of tho law could not euccoed without collusion aud corruption among luternal reve- aue officers, and especially among Gaugers and Btorakeapers, Sccretary Dristow did not dis- miss the subject from his miud, Factscon- tinued to reach him which CONFINMED UIS NELIEP that the whisky-tax waa by no means thorough- Iy collected. He hind reached this conclusion as long sya as the Isttor part of Fobruary. Moan. whilo, Commissioner Dovgiass, In pureusnce of the policy which Lo had constantly advoecated, iusued Lis ordor directing the transfer of the Bu~ porvisors of evory district in the country. The Sunervisor of 1llinom was to bo vent to Now York; tho Huporrisor af'Bt. Louls was ore dored to Californis. This ordor excited the iutenso aud succossful oppomtlon of the politicians, Tho Suporvisors of IiMuois and Lulflwufl camo bore in person to work for the rovacation of the ordor.. As soon as Dauglass dofinitely stated that his belief in the parfeotion of his syutom was such that no fraud could be carried ou, and soon after the revocation of tha order cmugin&: tho Bupervisors, Becretacy Dris- tow discovered that information as to the move- tonte of apacial agents of the Internal Roventio llureau, and of the business traugactions of that oftico, wera promptly communicated to members of the supposed whisky ring, ——— CHICAGO, HOW THE WORK WAS PELYORNED HERE, Tho campalgn against the Whisky Ring was formally opened {u this city yestorday, though for soveral woeks rumors uad boen carrent that sometbing of unusual gravity was beariog upon the miuds of tha members of tha rov- enue service, and upon tho intoresta o1 distillers and rectiflers. The romoval of Com. mirsionor Douglass tandod to multiply reports and to intensify tho fright which had provalled, Lhuer Washburn, Chiof of the Umted States Hecrot Bervics, Liad been known to ba prowling around for several days by tho revenue oflicors, but hia reticonco with them ndded to thoir gou- tusion and suspiclon, + THE GLOLULM EXPLODED by the arrival of Bupervisor Tutton, of Philsdele phis, Sunday evening, who, taking advautage of information gloaned by Washbury of Liticit traftio iu highwiuca ond wbisky, added o wlkat ha brought dirset from tho authorities at Wasbing. ton, procowded to *‘dotain™ the distilling ane roctifying ostablishmenta of Goldsen & Eaat. mau, Toelle, Youuker & Co, @. Q. Rusedll, P, R, Mason, tho Lske Bhore Cowmpauy, and Byron Sawyer. He imme- dintely pluced each concorn In tho hands of a custadian, sud lodged complaint with Collestor Wadsworth, aud asked bim to seiza them. Tha vequost was complied with, and at noon the en. tire property of the covoerns named wad in the Lands of the Governmeut. Supervisor Tution was uasisted In Lin work by Supervisor Muno, My, Weshburn, Deputy Oollector loyt, sni Revonuoe Ageuts Lrown and Livingston, | TUE GUEATEST EXOITEMENT PREVAILED in whisky circles the moment the selaures wera aonounced. Tho oftics of the Colleotor and Dis- trict Attorney were bealeged by inquirers to koow whstthe Lroubls vas, and